Arbor Networks to launch expansion, add 56 jobs

A global network security firm with a research and development office in Ann Arbor is expanding its presence here after considering adding to its Massachusetts office.

Arbor Networks is poised to invest $14 million in an expansion that would require the addition of 56 jobs in the coming years.

The state was expected to give the project a boost this morning by approving a 10-year, $1.5 million tax credit for the company, which is also expecting to receive an eight-year, $193,200 tax abatement from the city of Ann Arbor.

Company officials said they opted to launch the R&D expansion in Ann Arbor despite the fact that the firm is headquartered in Boston.

"We're looking for very substantial growth for the company in the 2008," said Rob Malan, Arbor Networks' co-founder and chief technology officer.

Arbor Networks is also in the midst of a search process to find a new office. The company is running out of room at its downtown Ann Arbor operation and expects to build a laboratory in which it can test its network security technology.

Harry Wan, vice president for engineering and director of the company's 72-person Ann Arbor site, said he expects the company to settle on a new location within 60 days. The firm currently occupies about 12,000 square feet in the City Center Building on East Huron Street.

Wan said he expects the company's hiring process throughout the expansion to proceed at a "pretty measured pace." He said the company would hire about 11 workers in 2008 and 13 in 2009. Most of those employees - whose average salary is expected to be $81,016 - will be software engineers.

Arbor Networks started with six employees about eight years ago after spinning out of the University of Michigan. The firm provides security solutions to major corporations and Internet service providers.